I'm just in the process of migrating from dm Server to Virgo. I've installed Virgo Web Server M6 and on launching I get the following exception:

<HD0002E> Hot deploy failed for file 'org.eclipse.virgo.apps.repository-2.1.0.M06-incubation.par'. org.eclipse.virgo.kernel.deployer.core.DeploymentException: listFiles() failed for file C:\java\springsource\virgo-web-server-2.1.0.M06-incubation\work\org.eclipse.virgo.kernel.deployer_2.1.0.M06-incubation\staging\global\par\org.eclipse.virgo.apps.repository\2.1.0.M06-incubation\org.eclipse.virgo.apps.repository-2.1.0.M06-incubation.par\
at org.eclipse.virgo.kernel.install.artifact.internal.StandardInstallArtifactTreeInclosure.createInstallTree(StandardInstallArtifactTreeInclosure.java:130)
at org.eclipse.virgo.kernel.deployer.core.internal.PipelinedApplicationDeployer.doInstall(PipelinedApplicationDeployer.java:140)
at org.eclipse.virgo.kernel.deployer.core.internal.PipelinedApplicationDeployer.install(PipelinedApplicationDeployer.java:123)
at org.eclipse.virgo.kernel.deployer.core.internal.PipelinedApplicationDeployer.deploy(PipelinedApplicationDeployer.java:187)
at org.eclipse.virgo.kernel.deployer.hot.HotDeploymentFileSystemListener.deploy(HotDeploymentFileSystemListener.java:174)
at org.eclipse.virgo.kernel.deployer.hot.HotDeploymentFileSystemListener.deployIfNotDeployed(HotDeploymentFileSystemListener.java:186)
at org.eclipse.virgo.kernel.deployer.hot.HotDeploymentFileSystemListener.onChange(HotDeploymentFileSystemListener.java:87)
at org.eclipse.virgo.util.io.FileSystemChecker.notifyListeners(FileSystemChecker.java:245)
at org.eclipse.virgo.util.io.FileSystemChecker.check(FileSystemChecker.java:166)
at org.eclipse.virgo.kernel.deployer.hot.WatchTask.run(WatchTask.java:58)
at java.lang.Thread.run(Thread.java:619)
Caused by: org.eclipse.virgo.util.io.FatalIOException: listFiles() failed for file C:\java\springsource\virgo-web-server-2.1.0.M06-incubation\work\org.eclipse.virgo.kernel.deployer_2.1.0.M06-incubation\staging\global\par\org.eclipse.virgo.apps.repository\2.1.0.M06-incubation\org.eclipse.virgo.apps.repository-2.1.0.M06-incubation.par\
at org.eclipse.virgo.util.io.FileSystemUtils.listFiles(FileSystemUtils.java:237)
at org.eclipse.virgo.util.io.FileSystemUtils.listFiles(FileSystemUtils.java:268)
at org.eclipse.virgo.kernel.artifact.fs.internal.FileArtifactFSEntry.getChildren(FileArtifactFSEntry.java:50)
at org.eclipse.virgo.kernel.install.artifact.internal.ParPlanInstallArtifact.findChildArtifacts(ParPlanInstallArtifact.java:95)
at org.eclipse.virgo.kernel.install.artifact.internal.ParPlanInstallArtifact.<init>(ParPlanInstallArtifact.java:86)
at org.eclipse.virgo.kernel.install.artifact.internal.ParPlanInstallArtifactFactory.createParPlanInstallArtifact(ParPlanInstallArtifactFactory.java:75)
at org.eclipse.virgo.kernel.install.artifact.internal.PlanInstallArtifactTreeFactory.createParTree(PlanInstallArtifactTreeFactory.java:97)
at org.eclipse.virgo.kernel.install.artifact.internal.PlanInstallArtifactTreeFactory.constructInstallArtifactTree(PlanInstallArtifactTreeFactory.java:88)
at org.eclipse.virgo.kernel.install.artifact.internal.StandardInstallArtifactTreeInclosure.constructInstallArtifactTree(StandardInstallArtifactTreeInclosure.java:156)
at org.eclipse.virgo.kernel.install.artifact.internal.StandardInstallArtifactTreeInclosure.createInstallTree(StandardInstallArtifactTreeInclosure.java:124)
... 10 common frames omitted

The directory referred to exists, has files in it, and is readable, so I'm a bit mystified.

Deploying artifacts and plans by dropping them into the pickup directory doesn't seem affected by it (the problems I'm getting there lie elsewhere), so for now it doesn't seem to be a showstopper for me, but I haven't seen any other reports of similar.

I haven't yet filed a bug report in JIRA as the frontpage seems to suggest not to until the release happens.

If there's any more info I can look for, let me know and I'll try to dig a bit deeper.